Abbreviated Company Accounts - P.MEEKS (ELECTRICAL) LIMITED

1Accounting Policies

Basis of measurement and preparation of accounts
The financial statements have been prepared under the historical cost convention.

Turnover policy
Turnover is derived from the principal activity of electricians and electrical contractors.

Turnover represents net invoiced sales of electrical contracting services and related materials issued in the year plus accrued income, excluding value added tax.


In line with Financial Reporting Standard 5, Reporting the Substance of Transactions, Application Note G, Revenue Recognition income has been recognised when the company obtains the right to consideration in exchange for its performance.

Tangible assets depreciation policy
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Other accounting policies
Stocks
Stocks consist of parts and goods purchased for resale. Stocks are valued at lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

Going concern
The directors have considered the financial position of the company and believe it is well placed to manage its business risks successfully. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of preparation in preparing the financial statements.